Which of the Following Is False

question 54

Multiple Choice

Which of the following is false?

• A)a pedestrian who has a PAP and is injured by an automobile can collect under his own Medical Payments coverage
• B)the PAP covers theft of the automobile
• C)the subrogation provision of the PAP does not apply to Medical Payments coverage
• D)there is no coverage for the insured while driving a rented automobile

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Definitions:

Compounded Monthly

Interest calculated on the initial principal and previously earned interest, recalculated every month.

Car Loan

A financial agreement in which a borrower receives money to purchase a car and agrees to repay the lender over time, typically with interest.

Total Interest

The sum of all interest payments made over the life of a loan or investment.

Compounded Quarterly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a quarterly basis.